Update to IRAS’s etax guide on Fringe Benefits

“Am I eligible to claim the GST incurred on fringe benefits provided to my employees?” “Will I be required to account for output tax on fringe benefits provided to my employees?”

23 March 2017, 8.15am – 11.00am, Singapore Marriott Tang Plaza Hotel

Registration and breakfast: 8.15am

Breakfast briefing: 9am-11am

These are some of the common questions raised when assessing the GST implications of fringe benefits provided by employers to their employees. It is essential for businesses to understand the GST reporting obligations of when input tax is claimable and when to account for output tax in this regard. For example, you are required to apply the deeming provisions and account for output tax on a “free” gift of goods (subject to certain conditions), even though no consideration has been received by you in exchange for the goods given.

In addition, fringe benefits at times challenge the underlying concept of GST that is, determining whether the purchase of fringe benefits should be considered as “incurred wholly in the course or furtherance of your business” as there is almost always an element of personal consumption in respect of any fringe benefit provided.

It is these areas of doubt that have prompted the IRAS to issue further guidance on the GST implications of the provision of fringe benefits to employees which has attracted a lot of attention in recent months. On 16 May 2016, IRAS published a guide which aligned the tax treatments for GST and Corporate Income Tax, but meant that such input tax is no longer allowed in many situations where businesses would have previously claimed it. Following a series of dialogues, IRAS has now released a second edition on 6 January 2017 to provide further clarity on certain scenarios and positions taken which consequently may result in taxpayers having to review the previous GST returns to ascertain if any unclaimed input tax may now be claimable and if so, consider whether a GST F7 should be submitted. As a result it is important to understand these key changes and how it affects your GST reporting obligations.

We look forward to seeing you at our seminar.